On 9 October, a high-level 135-member delegation from Saudi Arabia landed in Islamabad for a three day official visit from 9-11 October. The delegation which is led by Saudi Arabia’s Investment Minister Khalid bin Abdulaziz Al-Falih is set to discuss bilateral investment opportunities and agreements between the two countries. The business delegation is composed of representatives from various sectors, including “energy, mining, minerals, agriculture, business, tourism, industry, and manpower.” The News Internationalreported that chiefs of Saudi Central Bank, Investment bank, Telecom Authority, Exim Bank and Mining Department are also a part of the visiting delegation. Further, it revealed that around 300 companies from Pakistan are set to meet the delegation. The delegation was received by Federal Minister for Board of Investment, Privatisation & Communications Abdul Aleem Khan, and Minister for Trade Jam Kamal Khan and Minister for Petroleum Mohammad Musadik Malik, including other senior officials. 

What is the background?
During his visit to Saudi Arabia in September 2023, the then Caretaker Prime Minister Anwaarul Haq Kakar had revealed that Saudi Arabia has promised to invest up to USD 25 billion in Pakistan over the “next two to five years.” After his first official visit to Saudi Arabia in April 2024, Prime Minister Shehbaz Sharif had revealed that the Saudi Crown Prince Mohammed bin Salman had agreed to expedite the transfer of promised USD 5 billion Saudi investment to Pakistan. Following this a business delegation composed of investors had arrived in May “to explore investment opportunities.” Both PM Sharif and FM Ishaq Dar have acknowledged Saudi Arabia’s support in being able to clinch the International Monetary Fund (IMF) USD 7 billion bailout package last month. They also expressed gratitude for Saudi Arabia’s help in stabilizing the country’s economy. Highlighting their economic partnership and close bilateral relations on the eve of the delegation’s arrival, Dar stated ““The two countries are on a path to forge ever closer strategic cooperation.”

What is on the agenda?
During the visit the two countries are expected to agree to USD 2 billion in business-to-business (B2B) investment proposals. Earlier, Deputy Prime Minister Ishaq Dar had confirmed this at an event and revealed that “the Saudi Minister for Investment will finalise various B2B investment proposals, estimated to exceed $2 billion.” Further, Prime Minister Shehbaz Sharif had also informed the federal cabinet about these developments. The delegation is also expected to visit the visit Special Investment and Facilitation Council (SIFC). PM Sharif is also expected to call for a special meeting of the federal cabinet where agreements agreed at the SIFC meeting would be approved.

Several agreements and Memorandums of Understanding (MoUs) pertaining to trade and investment are expected to be inked during the visit. Elaborating on the nature of these agreements, The News International revealed that in an accord pertaining to the energy sector is expected to be signed with FWO for the white pipeline project that is to be laid from Machhikay to Taru Jabba. Further, an agreement is also expected between the Kingdom of Saudi Arabia’s (KSA) Mining Department and Pakistan’s Petroleum Division on “mining of barite, zinc and lead.” Other agreements expected to be inked relate to Saudi investment in Pakistan’s textile sector, corporate farming, semi-conductors, construction sector, pharmaceuticals units and human resource exchange.

References
“Saudi team arrives to boost trade cooperation,” Dawn, 10 October 2024
Ayaz Akbar Yousafzai, Azaz Syed & Khalid Mustafa, “Saudi Arabia, Pakistan to sign 26 contracts valuing $2.2bn,” The News International, 10 October 2024
“Saudi business delegation lands in Pakistan for $2b investment talks,” The Express Tribune, 9 October 2024
 “Pakistan to sign agreements worth $2 billion with Saudi Arabia, says PM Shehbaz,” Dawn, 8 October 2024
Iftikhar Shirazi, “PM Shehbaz, Crown Prince Salman agree to expedite $5bn Saudi investment in Pakistan,” Dawn, 8 April 2024
Syed Irfan Raza, “Pakistan aims high as Saudi investors arrive,” Dawn, 6 May 2024